My Birmingham Beauty- First Turnkey- PICS

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My Birmingham Beauty- First Turnkey- PICS

Rollan Dizon
Investor · San Jose, CA · Member since 2015 · 64 posts · 26 votes

Good afternoon BP Fam-

After immersing myself with rich content the past 2 months at Bigger Pockets, and the endless streams of podcasts; I have my first turnkey rental real estate success story to share.  I contracted this fixer upper back on May 17, and we closed today 7/1. Here are the numbers:

1. Purchase Price $114,000, with closing costs, all in around $119K

2. 1 yr Lease secured (tenants moved in) $1325/month, 10% more than my target rent.  Location and quality of the rehab played a big role in getting a tenant so quickly; tenant signed the 1 year lease even before the property was finished.

3. My independent home inspection was very clean.  I should not have any major capex issues the next few years, but will be banking all of the cashflow just in case.

Here she is:

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  • Ann Howell
    Investor · Houston, TX · Member since 2014 · 128 posts · 87 votes
    11y

    Congratulations!  That is an exciting step. 

    We are working on a turnkey purchase in Birmingham that is not going nearly that well.

    0Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    @Rollan Dizon

     A big congrats on getting your first investment property, and doing so turnkey.  It looks like a beauty.  I have been a turnkey investor now for several years.  

    0Reply
  • Dan Falcon
    Rental Property Investor · Ridgewood, NJ · Member since 2013 · 49 posts · 66 votes
    11y
    How much did the rehab cost you?
    0Reply
  • Rollan Dizon
    OP
    Investor · San Jose, CA · Member since 2015 · 64 posts · 26 votes
    11y

    @Ann Howell sorry to hear that you process is not going well. Was it the property itself or the service of the turnkey provider?

    @Larry Fried Thank you Larry! Appreciate it. I still have 3 more deals (2 closed but in the middle of rehab, 1 duplex in contract) to go finish up. I am hoping they go as smoothly as this first one.  I am also up to my eyeballs converting my previous residence in California to a rental. I am buried with real estate...in a good way.

    @Dan Falcon My purchase price as "all in" including rehab costs.  The property appraised for 130K, and estimates from various internet sources peg it at 155k+.  I am not so worried about price as I am about how much we can rent it out.  Hope that helps! Thanks.

    0Reply
  • Pancham G.
    Investor · Jericho, NY · Member since 2015 · 171 posts · 148 votes
    11y

    @Rollan Dizon: Big congrats!!! This is a just a beginning... 

    0Reply
  • J Benoit
    Residential Real Estate Agent, Investor and Mentor · Birmingham, AL · Member since 2013 · 257 posts · 61 votes
    11y

    Congrats, that's a nice house!

    0Reply
  • Rollan Dizon
    OP
    Investor · San Jose, CA · Member since 2015 · 64 posts · 26 votes
    11y

    @Pancham G. Thank you Pancham, I certainly hope so!

    @J Benoit Thank you J! I am looking forward to what you and Jarrod can do with my Hendrix property.  You firm is highly recommended for Birmingham property management!

    1Reply
  • Billy Maloney
    Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
    11y

    @Rollan Dizon

     Congrats Man. Glad to see you got your first property.

    0Reply
  • Jonathan Makovsky
    Investor · Fairfield-New Haven-Hartford County, CT · Member since 2013 · 825 posts · 413 votes
    11y

    Congratulations! It was probably a very clean HUD on July 1st.

    We purchased our first property a year ago today - it's been an awesome ride and year. Wishing you many more successes! 

    0Reply
  • Alexander A.
    Investor · Indianapolis, IN · Member since 2015 · 143 posts · 82 votes
    11y

    Congrats!  You planning on getting the next one in birmingham also?

    0Reply
  • J Benoit
    Residential Real Estate Agent, Investor and Mentor · Birmingham, AL · Member since 2013 · 257 posts · 61 votes
    11y

    Thanks @Rollan Dizon!  We look forward to taking care of you ;-)

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Rollan Dizon

      as you know the TK provider and PM is key.. glad you found the gold standard!

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
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    0Reply
  • Kevin Trumbull
    System Administrator / Investor · Eugene, OR · Member since 2015 · 144 posts · 29 votes
    11y

    Congrats @Rollan Dizon, great looking house! You mention turnkey, then fixer upper, can you elaborate on that? Did you buy it pre-rehab?

    0Reply
  • Rollan Dizon
    OP
    Investor · San Jose, CA · Member since 2015 · 64 posts · 26 votes
    11y

    @Billy Maloney Thanks brother! So relieved the first one turned out well.

    @Jonathan Makovsky It was a very clean HUD. Can't wait to see my first rent check!

    @Alexander A. Yes, already closed on another Birmingham property, but it is in the middle of the renovation. I bit off a lot with my first experience, 2 in Birmingham, and 2 in Indianapolis.  

    @Jay Hinrichs You said it! A reputable turn key operator is the key, and its the property manager that will make these properties perform.

    @Kevin Trumbull The provider I went through has a couple of purchase options.  This one i just closed, was delivered all ready.  The intent was that it will be fully rehabbed and tenanted before COE. Fortunately, I still got very equity on this house based on appraisal.  I have another property purchased through the same provider, but it is a "wholesale" option. I bought it pre-renovation (COE); but they are managing and overseeing the whole renovation and finding my tenant.  The advantage of this is I get more equity upfront.  Does that make sense?

    0Reply
  • Angel Rosado
    Bronx, NY · Member since 2015 · 151 posts · 54 votes
    11y

    @Rollan Dizon just wondering why Birmingham?  What drove you to purchase here and not other locations? 

    0Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    11y
    Originally posted by @Rollan Dizon:

    Good afternoon BP Fam-

    After immersing myself with rich content the past 2 months at Bigger Pockets, and the endless streams of podcasts; I have my first turnkey rental real estate success story to share.  I contracted this fixer upper back on May 17, and we closed today 7/1. Here are the numbers:

    1. Purchase Price $114,000, with closing costs, all in around $119K

    2. 1 yr Lease secured (tenants moved in) $1325/month, 10% more than my target rent.  Location and quality of the rehab played a big role in getting a tenant so quickly; tenant signed the 1 year lease even before the property was finished.

    3. My independent home inspection was very clean.  I should not have any major capex issues the next few years, but will be banking all of the cashflow just in case.

    Here she is:

    Looks good mate,

    Well done.

    Podcast Guest on Show #89
    Oz Realty4.5368 Reviews
    WebsiteView Page
    0Reply
  • Rollan Dizon
    OP
    Investor · San Jose, CA · Member since 2015 · 64 posts · 26 votes
    11y

    @Engelo Rumora

     Thank you Engelo!  We will be talking after these current projects.

    1Reply
  • Rollan Dizon
    OP
    Investor · San Jose, CA · Member since 2015 · 64 posts · 26 votes
    11y

    @Angel Rosado

    I was location agnostic. After a review of different properties, locations and RTV ratios, it just happen to be that Birmingham fit the bill.  The 2021 World games will be held there and there is a revitalization going on in the city. There is an emergence of nice restaurants and foodie favorites that is becoming a foodie destination in the south. There are other markets I'm looking into. I have 2 in Indianapolis, and looking closely in Ohio. Kansas is also a target but prices are heading up quite a bit. Hope that helps!

    1Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    11y
    Originally posted by @Rollan Dizon:

    @Engelo Rumora

     Thank you Engelo!  We will be talking after these current projects.

    Thanks mate

    No rush :)

    Podcast Guest on Show #89
    Oz Realty4.5368 Reviews
    WebsiteView Page
    0Reply
  • Allison Karrels
    Investor · Gainesville, VA · Member since 2014 · 118 posts · 76 votes
    11y

    @J Benoit - interesting properties.  I might have to look at your company for my next turn key purchase. 

    0Reply
  • Bhekizwe M.
    Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    11y

    congrats on the success.

    0Reply
  • Mike Thomas
    Sarasota, FL · Member since 2014 · 11 posts · 5 votes
    11y

    @Rollan Dizon very nice!

    I am originally from Alabama.  My family still lives there, about 1hr. North of Birmingham.

    Your turnkey success has peaked my interest.  I will likely be contacting the folks that did so good by you.  

    Congratulations.

    0Reply
  • Rollan Dizon
    OP
    Investor · San Jose, CA · Member since 2015 · 64 posts · 26 votes
    11y

    Thank you Bekhizwe!

    @Mike Thomas Best of luck! Let me know if there is anything I can do to help.

    0Reply
  • Marco Santarelli
    Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
    11y

    @Rollan Dizon -- Nice property.  Looks like a good find.   Not sure of the neighborhood, but based on your comments and the photos it would appear to be in a good area.

    We really like Birmingham.  Been selling more properties there lately so I have to believe that there is increasing interest in the market.

    Continued success!

    0Reply
  • Rollan Dizon
    OP
    Investor · San Jose, CA · Member since 2015 · 64 posts · 26 votes
    11y

    @Marco Santarelli

     Thanks Marco! I listen to your podcasts, very helpful.

    1Reply
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